The States with the Cheapest Gas

In the second quarter of 2012, the relative cost of transportation in Virginia was among the country’s lowest. Low gas prices are likely one reason for this. Virginia is also one of the wealthiest states in the country, with a median household income of $61,882 as of last year. Currently, Virginia charges 20.1 cents per gallon in total taxes and fees — more than 10 cents per gallon below the national average and inline with other states where gas is inexpensive.

Georgia’s excise tax of 7.5 cents per gallon of gas is lower than any state except for Florida’s. But with 21.1 cents per gallon in other fees and taxes, Georgians actually pay more in gas taxes than residents of 30 other states. High taxes likely contributed to the state’s relatively higher transportation costs midyear — the most expensive among those states with the lowest gas prices. The good news for drivers, however, is that the price of gas has fallen by 24 cents per gallon over the past month, more than in any other state.

Arkansas has access to locally refined gasoline. It has two refineries of its own, and it borders Louisiana and Texas, the two largest oil refiners in the country as measured by barrels per day. Having numerous refineries nearby helps lower the price of gas for Arkansas drivers, who presently pay 24 cents less per gallon than the national average of $3.82 a gallon. Arkansas also charges just 0.3 cents in other taxes per gallon in excise taxes.

Although one year ago Missouri had the cheapest gas in the U.S., in the past year the price of gas has risen by 45 cents per gallon — more than in any other state. Despite the absence of any in-state refineries, Missouri has some of the nation’s lowest gas taxes, allowing gas to be sold at comparatively low prices. Among the state’s metropolitan areas, St. Louis has the cheapest gas at just $3.49 per gallon.

Only Texas refines more oil into gasoline than Louisiana, which has 18 operating refineries processing nearly 3.2 million barrels per calendar day. The abundance of locally processed gas and the total absence of any state gas taxes aside from an excise tax make trips to the pump highly affordable. The state is also home to the Louisiana Offshore Oil Port, which, according to the EIA, is the nation’s only port for offloading deep draft oil tankers.